MIDDLETOWN – KVH Industries Inc. reported a loss of $4.3 million in the third quarter, a loss 3.7 times larger than the company’s reported loss in the third quarter of 2018.
Loss per diluted share was 25 cents for the quarter, compared with a loss of 7 cents one year prior.
Revenue remained level from one year prior at $39.3 million. Product sales revenue declined 9.5% year over year to $14.8 million. Service sales totaled $24.5 million, a 6.8% increase year over year.
The company said its connectivity as a service program, called AgilePlans, experienced a more-than-100% increase in revenue year over year. AgilePlans was said to represent 24% of all of the company’s subscribers.
Sales of the company’s inertial navigation products declined $2.1 million year over year, however the company said it had a $22.2 million backlog in such products, its highest backlog since 2014.
“Our core business in our mobile connectivity segment continued to expand in the third quarter, in line with our expectations,” said KVH CEO Martin Kits van Heyningen in a statement. “We are very pleased with our quarterly and year-to-date double-digit growth for both airtime revenue and subscribers.”
The company reported an increase in product-sales costs; service-sales costs; research and development spend; sales, marketing and support costs; and general and administrative costs year over year, as total costs and expenses increased 7.3% to $44.2 million.
“We are accelerating investments in our key strategic initiatives, including our photonic chip technology, which has entered the design verification test phase within select KVH products, and our KVH Watch IoT connectivity as a service, which is entering the pilot deployment phase,” said Kits van Heyningen.
The company improved its fourth-quarter projections from $41 million in revenue to $45 million in revenue.
